The Internal Revenue Service has launched a new tool that will allow families to update income information that could impact how much they receive from future child tax credit payments.
The window to provide the updated information is small, however.
Families with “significant income changes” that could result in higher or lower monthly payments are urged to enter the information on the Child Tax Credit Update Portal on IRS.gov by midnight ET (11 p.m. CT) Nov. 1 so they can be factored in on the next payment on Nov. 15. If families are unable to make the changes by Nov. 1, they must enter them by Nov. 29 to be reflected in the December payment.
“The IRS will adjust the payment amount to reflect these changes and ensure people receive their total advance payment for the year of up to $1,800 for each child under age 6 and up to $1,500 for each child ages 6 through 17,” the IRS said.
Families whose income rose “substantially” in 2021 should consider having their payments reduced or stopped, according to the IRS, especially if they are receiving the maximum monthly payments and expect to qualify for less than the full credit when they file their federal income taxes. On the other hand, people who have lost significant income should make the change so that their payments can be adjusted if they are currently receiving less than the maximum allowed each month.
Child tax credit
The expanded child tax credit provides up to $300 per month for each child under age 6 and up to $250 per month for each child ages 6-17. The remainder of the credits – up to $1,800 – can be claimed when filing 2021 taxes in 2022.
Payments are subject to income limitations for recipients. Payments are reduced adjusted gross income exceeds $150,000 for married couples filing jointly; $112,500 for those filing as head of household; and $75,000 for single filers or married couples filing separate returns.
The child tax credit payments are currently set to end in December but the White House has indicated it would like to see it extended through the next year.
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November 01, 2021 at 06:24PM
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